Which of these arguments did you include in your response? Check all that apply.
Sample response:Based on the data in the graphs,
Alonzo's Cycling should produce five or six bikes if it
wants to maximize its profits. This is because the sixth
bike is the point at which the marginal revenue matches
the marginal cost. The company will make $go in profit
with the sale of its fifth or sixth bike each day. After that,
the profit begins to fall with each sale.
O Profit is maximized when marginal revenue equals
marginal cost.
Profit is maximized when five or six bikes are made
each day.
Profit declines when more than six bikes are
produced each day.